Stock Scan: Garware Technical Fibres Rises with Volume Spike

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Textile Stock Buzzes amid Broader Stock Market Selloff

By S Jha

New Delhi, November 21: Shares of Garware Technical Fibres on Thursday closed with gains of 5.20 per cent. The technical textile manufacturer extended gains amid broader market rout over indictment of Gautam Adani by a US Federal Court.

Shares of Garware Technical Fibres closed at ₹4660 on Thursday. The stock has been buzzing on the street for past few days. Even while a large number of stocks have corrected significantly, shares of Garware Technical Fibres have gained eight per cent in the last one month.

Garware Technical Fibres has also been buzzing on the street amid plan to issue bonus shares. The company plans to give four new shares against one held by investors. The company has a plan to issue the bonus shares within two months.

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The 52-week high of the Garware Technical Fibres stock is ₹4785. The 52-week low of the Garware Technical Fibres is ₹3132. The face value of the shares of Garware Technical Fibres is ₹10.

There is a buzz around textile sector. India is aiming to expand its export from the textile sector. A report from the US recently stated that political stability is a key factor in the rising profile of India’s exports from the textile sector.

Also, Bangladesh, which is second largest exporter behind Vietnam, has lately been caught in spells of disruptions and violence. The Sheikh Hasina-led regime was ousted after months of violent protests.

Industry participants believe that India has a chance to raise its profile in the textile exports market. A number of states such as Uttar Pradesh are ramping up facilities to attract investments in the textile sector.

The Garware Technical Fibres shares on the technical chart saw at least three four major volume spikes. The biggest volume spike for Garware Technical Fibres share came on September 19 this year.

The stock on September 19 rose to ₹3983 to come closer to the previous high of ₹4148 seen on June 10 this year. The peak was seen within a week of sharp volume spike on May 28 this year.

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A month after the volume spurt in September 19, the Garware Technical Fibres stock climbed to all-time peak of ₹4312 on October 21 this year. The first volume spike for Garware Technical Fibres this year was seen on January 5 this year when the shares had closed at ₹3707.

The major recent volume spurt came on November 18 for Garware Technical Fibres. The shares of the technical fibres maker closed at ₹4690 after the volume spurt. With four major volume spikes this year, the Garware Technical Fibres stock has climbed from ₹3707 in January first week to ₹4660 on Thursday.

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The stock of Garware Technical Fibres is trading at PE valuation of about 40. The company reported an Earning Per Share (EPS) of 33 in the September quarter against 23.55 in the June quarter. The FIIs and DIIs marginally raised their stakes in the September quarter.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company. Stock market investment requires high degree of discipline, patience, and knowledge.